Casual apparel company Tarrant Apparel Group says it has signed a mutual agreement with Inc to terminate a Letter of Intent according to which Qorus was to acquire Tarrant Apparel's Private Brands subsidiary.

Gerard Guez, chairman of Tarrant Apparel, said: "After further review, we determined that continuing to operate Private Brands as part of Tarrant Apparel Group provides the best platform to grow this business.

"We will continue to build our Private Brands business by increasing the distribution of existing brands as well as adding exciting new lines to our portfolio."

Tarrant Apparel's Private Brands Inc designs, markets, and manufactures privately owned brands and  has exclusive license agreements with several celebrity brands.